Appalachian Power Company Enters Underwriting for $1.376B Bonds

What Happened

• Appalachian Power Company (APCo) and Appalachian Power Recovery Funding LLC entered an Underwriting Agreement on May 19, 2026 with Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and RBC Capital Markets, LLC as representatives of the underwriters. The underwriters agreed to purchase $1,375,500,000 aggregate principal amount of the Issuing Entity’s Series 2026-A Senior Secured SAC Bonds, to be issued under an Indenture and Series Supplement dated May 27, 2026. The bonds were offered pursuant to a prospectus dated May 19, 2026. APCo also expects to enter related Servicing, Purchase and Sale, Administration agreements and a Joinder to an Intercreditor Agreement dated as of May 27, 2026.

Key Details

• Amount: $1,375,500,000 aggregate principal of Series 2026-A Senior Secured SAC Bonds.
• Dates: Underwriting Agreement dated May 19, 2026; Indenture and related documents to be dated May 27, 2026.
• Underwriters: Goldman Sachs & Co. LLC; J.P. Morgan Securities LLC; RBC Capital Markets, LLC.
• Transaction documents (indenture, servicing, purchase/sale, administration, joinder) are included or referenced in the 8-K filing as exhibits.

Why It Matters

• This is a material financing move: APCo is facilitating a securitized bond issuance through a special-purpose issuing entity, which raises a substantial amount of capital ($1.3755B) and may affect the company's financing structure.
• The Underwriting Agreement includes customary representations, conditions, indemnities and Securities Act liability allocations that create contractual obligations and potential liabilities until closing.
• The filing does not disclose final pricing, interest rates, maturities, or specific use of proceeds; investors should watch for subsequent filings or disclosures with those financial terms and for any credit- or cash-flow impacts disclosed by APCo.